With reference to Asharqiyah Development Co announcement on Tadawul dated 23/12/2015, which includes the disclosure of the signing of a two year contract for the supply of fresh milk effective 1/1/2016 with a total value of SR 28,500,000. Asharqiyah announces its decision dated 12/7/2017 to terminate the contract due to the customer's failure to comply with the terms of the contract. The contract stipulated submittal of purchase orders, as none were received for a period of six consecutive months which is deemed a breach of contract.
It should be noted here that Asharqiyah has made every effort to contact the customer through the agreed upon communication channels to inquire about the reasons for the suspension of the purchase orders, with no response to date, which necessitated the termination of the contract. Asharqiyah however, will reserves its rights of taking legal proceedings in the court of law. It is worth mentioning that there will be no negative financial impact resulting from the termination.
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